Kimpton® Hotels & Restaurants Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Kimpton Hotels & Restaurants is IHG's luxury boutique hotel franchise, pairing design-forward hotels with on-site bars and restaurants. Franchisees own and operate the properties, managing guest services, food and beverage, and brand standards.
FranchiseVerdict summary · 2026
A Kimpton® Hotels & Restaurants franchise does not disclose total investment in its current FDD, including a $100K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $65.1M
- 69th pct Lodging
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 6.0%
- 52nd pct Lodging
- Units
- 59
- 36th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $65.1M including a $100K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports operational metrics for 44 Mature Kimpton Hotels (FY2023), not gross sales dollars: Average Occupancy Rate 70.1% (high 86.3%, low 37.5%, median 71.5%); Average ADR $280.42 (high $942.58, low $144.92, median $245.96); Average RevPAR $196.47 (high $683.52, low $62.13, median $170.26). Of 59 US hotels, 44 qualified as Mature.
- RISKVerdict B (Above average), verdict score 58/100 (higher is better).
- LEGAL10 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- IHG Franchising, LLC
- Parent company
- Six Continents Hotels, Inc.
- Ultimate parent
- InterContinental Hotels Group PLC
- Predecessor
- Kimpton Hotel & Restaurant Group, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer, InterContinental Hotels Group, PLC
- Elie W. Maalouf
- Incorporated in
- DE
- HQ
- Three Ravinia Drive, Suite 100, Atlanta, Georgia 30346
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $68K
- vs $168K prior year
Affiliated brands
- of Holiday Hospitality Franchising
- Six Continents Limited
- IHG Hotels Limited
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Elie W. Maalouf
- Headquarters
- GA
- Founded
- 1981
- FDD year
- 2024
- States available
- 24
Can you afford it, and what does the money buy?
Source: FDD 2024 · Items 5–7
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $65.1M
- Bottom third — review vs category
- Liquid capital req'd
- $2.2M – $3.0M
- Bottom third — review vs category
- Franchise fee
- $100K
- Middle of category vs category
- Royalty
- 6.0%
- formula · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 26.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $17 |
| Training fee | $40K |
| Transfer fee | $25K |
| Inventory (initial) | $1.9M – $2.6M |
| Total fee load | 26.1% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Kimpton® Hotels & Restaurants did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Kimpton® Hotels & Restaurants unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
0%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Item 19 reports operational metrics for 44 Mature Kimpton Hotels (FY2023), not gross sales dollars: Average Occupancy Rate 70.1% (high 86.3%, low 37.5%, median 71.5%); Average ADR $280.42 (high $942.58, low $144.92, median $245.96); Average RevPAR $196.47 (high $683.52, low $62.13, median $170.26). Of 59 US hotels, 44 qualified as Mature.
Company-owned outlets only - not franchisee performance
- Item 19 type
- other
- Sample size
- 44
- vs category median 99 · small
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2024
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
Compared against 174 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 26.1% — above the Lodging average of 10.4%.
Disclosure
Item 19 reports other rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 100.0% CAGR over 3 years across 59 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How Kimpton® Hotels & Restaurants Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 59
- Opened
- 6
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +100.0%
- Net unit change over 3 years
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 6
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
- Transfer rate
- 9.8%
- Owners selling to other franchisees
- Termination rate
- 3.3%
- Franchisor-initiated terminations
- Ceased ops
- 1.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Kimpton presents elevated risk due to undisclosed financial performance, extensive litigation, unprotected territories, and aggressive expansion that outpaces due diligence transparency.
Litigation (Item 3)
No pending litigation relating solely to Kimpton brand. Multiple pending cases involving affiliates Holiday Hospitality Franchising LLC and Six Continents Hotels (SCH) for unpaid franchise fees, breach of contract, class actions re kickbacks and data breach. Several Kimpton-specific matters (credit card breach, BIPA class action, data security breach) concluded via settlement.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 58 / 100 verdict
- 01HIGHSignificant litigation portfolio including data security breaches, licensee disputes, non-payment actions, and territorial conflicts suggesting operational and legal risk
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation and creates opacity around actual franchisee profitability
- 03MINORUnprotected territory creates direct competition risk from other Kimpton franchisees and company-owned locations without contractual safeguards
- 04MINOR60% YoY unit growth rate is extremely aggressive and may indicate unsustainable expansion or cannibalization concerns rather than organic strength
- 05MINORGoing concern status is FALSE but absence of positive disclosure suggests financial stability may not be independently verified
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 26.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | GA |
| Litigation count | 10 |
View Item 3 litigation summary
No pending litigation relating solely to Kimpton brand. Multiple pending cases involving affiliates Holiday Hospitality Franchising LLC and Six Continents Hotels (SCH) for unpaid franchise fees, breach of contract, class actions re kickbacks and data breach. Several Kimpton-specific matters (credit card breach, BIPA class action, data security breach) concluded via settlement.
Items 10, 11
Training & Operations
- Classroom training
- 9 hrs
- On-the-job training
- 24 hrs
- Training location
- Atlanta, GA or other designated regional location; on-property; virtual
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Licensee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Oracle America, Inc. Opera/Opera Xpress PMS; F&B POS (Kimpton approved)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle America, Inc. Opera/Opera Xpress PMS; F&B POS (Kimpton approved)
Item 20 · call current owners
Franchisee Contacts
81 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Kimpton® Hotels & Restaurants · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
What do Kimpton® Hotels & Restaurants franchise owners earn?
Kimpton® Hotels & Restaurants does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Kimpton® Hotels & Restaurants FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Kimpton® Hotels & Restaurants FDD and qualifies whose outlets they describe.
What is Kimpton® Hotels & Restaurants's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Kimpton® Hotels & Restaurants (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Kimpton® Hotels & Restaurants franchise locations are there?
As of their most recent FDD filing, Kimpton® Hotels & Restaurants has 59 total units in the United States, including 16 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is Kimpton® Hotels & Restaurants a good franchise to buy?
FranchiseVerdict rates Kimpton® Hotels & Restaurants as a B-grade franchise with a verdict score of 58 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Kimpton® Hotels & Restaurants, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.